BoomTown's avatar
BoomTown 1 year ago
I disagree. Because (modern) equity requires governance control. Most modern “entrepreneurs” are cucked by their equity investors. Public and private and venture equity…they all control the entrepreneur. A good entrepreneur worth a damn won’t part with the equity. Which means most entrepreneurs will seek debt funding (priority claims) vs. giving up control and upside of their ventures.

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Equity and debt instruments are going to look completely different on a fixed money supply. Almost all projects were financed with equity in the past. It was this fact that was the impetus for the formation of the federal reserve. To force people to fund with debt instead. The old system of capital investment will return when the money can’t be printed into existence.